Transcript Document

GENERATION SUMMIT 2013
Title Page
“Power Generation and Public Policy: What Might
The Future Hold?”
John E. Shelk, EPSA President & CEO
Monday, February 25, 2013
OVERVIEW
 Who does EPSA represent?
 What market fundamentals and business trends are key to
power sector public policy issues?
 What might the future hold for public policy issues that
impact the power generation sector?
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Who does EPSA represent?
Leading Independent Power Producers
Calpine
Capital Power
Dynegy
Edison Mission Energy
EquiPower Resources
GDF SUEZ Energy N.A.
Northern Star Generation
NRG Energy
Tenaska
US Power Generating Co.
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Competitive Supply Affiliates of Major Utility Companies
Exelon Corp.
PPL Corp.
PSEG Power
Sempra U.S. Gas & Power
Power Marketing
BP Energy Co.
Shell Energy North America
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Key Characteristics About EPSA Membership
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CEO and Senior Executive Driven on Policy Priorities
Nationwide with emphasis on organized wholesale markets
Primary suppliers in key metro areas coast-to-coast
All fuels and technologies to generate electricity
Largest natural gas, nuclear and solar electricity suppliers
Leaders on controlling emissions from coal-fired plants
Largest retail competitive suppliers in addition to wholesale
EPSA works with State and Regional Partner trade groups
EPSA focuses on federal legislation and regulation
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EPSA Strategic Direction 2013 Onward (Summary)
Mission: Promote well-functioning, fair, robust and competitive
wholesale markets
Priorities: Improve wholesale market rules; oppose utility selfbuild; influence Demand Response policies; promote
non-discrimination as to existing/new sources,
technologies and fuels
Actively Monitor: Retail market issues, technology
developments, and environmental matters as
to impacts on wholesale markets
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What market fundamentals and business trends are key to power
sector public policy issues?
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Lowest wholesale prices in organized market history
Low natural gas prices, natural gas often at the margin
Excess power supply in most if not all wholesale markets
Weak demand growth – temporary or structural?
Growth in footprint/customers of organized markets
Significant political intervention in electricity markets
Extensive regulation of all aspects of the power business
The “ribbon cutting syndrome” and “anvils” on the scales
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What might the future hold for key public policy issues?
Themes
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Electricity is transformational and foundational
Everyone says “all of the above” but what does it mean?
Everyone says “fuel diversity” but what does it mean?
Competitive market forces should work here as elsewhere
For competition to work, must let “markets be markets”
Regulation should produce well-functioning markets
Political pressures in cost-of-service and competitive states
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“Lightning Round on Key Public Policy Issues”
Congress: More of the Same Dysfunction?
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Climate Change
Clean Energy Standard
Cyber Security
Energy Efficiency
Natural Gas Exports
Senate “advise and consent” on nominations
Congressional oversight
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Regulation: Where The Action Is and Will Be!
EPA
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GHG New Source Performance Standards-New Plants
GHG New Source Performance Standards-Existing Plants
Further Action on Mercury and Cross-State Rules
Once Through Cooling (“316(b)” Water Issue)
Coal Ash Combustion Waste
Regulation of “Demand Response” Back Up Generators
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Regulation: Where The Action Is and Will Be!
Federal Energy Regulatory Commission
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Capacity Markets and Resource Adequacy Generally
Gas/Electric Coordination
NERC Reliability Standards and Cyber Security
Demand Response Compensation
Market Mitigation (Over-Mitigation)
Order 1000 transmission planning (displace generation?)
Enforcement Actions and Theories on Market Manipulation
FERC and State Actions that Distort Wholesale Markets
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States as Laboratories of Democracy In Electricity, Too!
 Utility Self-Build – Case Study of Virginia
 Compare and Contrast – IL/PA/OH versus Michigan
 Are we repeating the 1970s/1980s in cost-of-service states?
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Rumsfeld’s Rules: Watch Out for Unknown, Unknowns!
What is the next game changing, disruptive development?
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Policies on climate change and renewable energy?
Technological developments bring down costs of solar?
Electric vehicles?
Distributed Generation/Demand Response/Efficiency?
Energy storage?
Greater retail competition?
Key – will still need conventional generation and it must
be fairly compensated, whether market-based or cost-ofservice, as nature of demands for it may change over time
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John E. Shelk
President & CEO
Electric Power Supply Association
1401 New York Ave., NW
Suite 1230
Washington, DC 20005
Telephone: (202) 628-8200
Fax: (202) 628-8260
E-mail: [email protected]
Website: www.epsa.org
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